Tesla is Selling an Additional $5 Billion in Stock Amid Surge
On Tuesday, Tesla announced that it is selling up to $5 billion in additional stock, according to CNBC.
The additional shares will be sold “from time to time” and “at-the-market” cost, according to a filing with the Securities and Exchange Commission.
The stock fell 4.67 percent by the close of Tuesday’s session. Tesla shares have surged this year. Through Monday’s close, shares have rallied almost 500 percent year-to-date. In the last year, shares gained 1,004 percent.
Tesla’s rally was given more steam when the company announced a 5-1 stock split on August 11. Since then, shares rallied 81.3 percent. Tesla’s market capitalization is now around $460 billion, according to FactSet.
On Monday, RBC reiterated its underperform rating on Tesla stating that it is “fundamentally overvalued.” However, RBC raised its price target from $170 to $290. Tesla shares closed at $478.19.